alameda county budget workgroup may 16, 2011

County Administrator’s Office

Alameda CountyAlameda CountyFY 2011-12

B d t U d tBudget Update

B d t W k M tiBudget Workgroup MeetingMay 16, 2011Susan S. Muranishi, County AdministratorKai Mander, Principal Analyst

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Economic Update

Beacon Economics East Bay Forecast:We have reached bottom, but slow recoveryUnemployment to stay high for some timeMedian home prices have stabilized; sales still lowTaxable sales increasingEast Bay will see strong economic growth again…but h ?when?

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State Budget Update

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State Budget Update—May Revise

Starting gap $26.6B ‐ $13.4B cuts/transfers adopted = $13.2B current gap

‐$6.6B increased revenue ($2.8B 2010‐11; $3.5B in 2011‐12, other )$ ($ ; $ , )+$3B: higher K‐14 spending, mental health, corrections spending , removal of Prop. 10 savings$9 6B gap + $1 2B to build reserve = $10 8B in solutions needed$9.6B gap + $1.2B to build reserve = $10.8B in solutions neededRedevelopment proposal still inExtend sales/VLF taxes until election; 0.25% income tax surcharge removed for one yearremoved for one yearFurther program realignmentAdditional program cuts. No use of Prop 10, 63 fundsCuts 5,500 State jobs, 43 boards/commissionsProposals for state and local pension reforms 4

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State Budget Update

Republican Budget ProposalNo cuts to K‐12, Higher EdOver‐realized revenue this year, assumed revenue growth next year ($5B)U f P 10 & 63 ($2 4B)Use of Prop. 10 & 63 ($2.4B)Rejects realignment proposalR d l t ($1B)Redevelopment ($1B)Restoring Gov. cuts rejected by Dems ($1.4B)State worker pay benefits ($1 1B)State worker pay, benefits ($1.1B)Other 5

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State Budget Update

Suspension of local government mandatesDeferred paymentsDeferred paymentsOther

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Federal Budget Update

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Federal Budget Update

FY 2011 Budget$3.8 Trillion plan adopted April 15$38.5B in total cuts from 2010 levelsOnly Defense and Military Construction – VA increasedFederal deficit projected to be $1.65 Trillion in 2011

2012 BudgetPresident Obama proposed $3.7 Trillion in spendingOver 200 programs to be cut or eliminated

Debt limit$14.3 trillion limit to be reached within weeksU.S. Treasury says it may begin defaulting on US obligations on August 2Deficit reduction talks ongoing 8

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Al d C 2011 12Alameda County 201112Maintenance of Effort BudgetMaintenance of Effort Budget

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FY 2011 12 MOE Budget All FundsFY 201112 MOE Budget All Funds(in millions)

FY 201011

FY 201112 Inc/ %

FINAL MOE (Dec) Change

Appropriation $2 443 4 $2 518 8 $75 4 3 1%Appropriation $2,443.4 $2,518.8 $75.4 3.1%

Revenue $2,443.4 $2,380.9 ($62.5) (2.6%)e e ue $ , 3 $ ,380 9 ($6 5) ( 6%)

Funding Gap $0 $137.9 $137.9FTE F.T.E. Positions* 9,103.2 9,160.0 56.8 0.6%

*Full‐time equivalent positions

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Major Components of Net County Cost IncreaseMajor Components of Net County Cost Increase (partial list)

Loss of one-time funding and revenues: $121.3MPrior year use of FMR $61.4ML f ti l f di $19 6MLoss of stimulus funding $19.6MPrior year use of designations $19.0MLoss of Vehicle License Fee revenue $8.4M1% designation for capital $5.0MLoss of SB 90 revenue $4.0MOther $3.9MOther $3.9M

Other expenditure and revenue changes $16.6MDRAFT


Closing the Gap - $137.9 million

Revenue Enhancements P R d tiProgram ReductionsCountywide StrategiesEfficiency improvements

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FY 11-12 Reduction Targets

Program Area Reduction Target

General Government $22.6M

Public Protection $44M

Public Assistance $33.2M$

Health Care $38.1M

T t l $137 9MTotal $137.9M

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FY 11 12 F nding Gap Red ctionsFY 11-12 Funding Gap Reductions($ in millions)

Program TargetReduction

Plans FTEs

General Government $22.6 $21.8 7

Public Protection $44 $39.0 48

Public Assistance $33.2 $32.8 60

Health Care $38 1 $38 1 12Health Care $38.1 $38.1 12

General Fund Total $137.9 $131.7 127DRAFT


Major Components of VBB ReductionsMajor Components of VBB Reductions (partial list)

Expenditure reductions $73.1Revenue increases $3.5FMR $55.1Total Reduction Plans: $131.7M$

Includes 127 Full‐time equivalent positions reductionsIncludes 127 Full time equivalent positions reductionsDRAFT


General Government ReductionsGeneral Government ReductionsMajor Components (in millions)

Fiscal Management Reward savings $17.3S di t i l di 7 FTE $4 0Spending cuts, including 7 FTEs $4.0 Additional Revenue $0.5TOTAL $21 8MTOTAL $21.8M

Total Reductions: $21.8 million; 7 FTEs;DRAFT


Public Assistance ReductionsPublic Assistance ReductionsMajor Components (in millions)

Fiscal Management Reward savings $15Expenditure reductions including 64 FTEs $44 1Expenditure reductions, including 64 FTEs $44.1Revenue decreases ‐$26.3TOTAL $32.8MTOTAL $32.8M

Total Reductions: $32.8 million; 60+ FTEs

Note: State budget cuts result in reduced expenditures and reduced revenuesDRAFT


Health Care ReductionsHealth Care ReductionsMajor Components (in millions)

Fiscal Management Reward savings $15.5E dit d ti i l di 12 FTE $16 5Expenditure reductions, including 12 FTEs $16.5Revenue increases $6.1TOTAL $38 1MTOTAL $38.1M

Total Reductions: $38.1 million; 12 FTEs;DRAFT


Public Protection ReductionsPublic Protection ReductionsMajor Components (in millions)

Fiscal Management Reward savings $8.6E dit d ti i l di 48 FTE $12 2Expenditure reductions, including 48 FTEs $12.2Revenue increases $10.2Possible Prop 172 revenue $8Possible Prop. 172 revenue $8______TOTAL $39.0M

Total Reductions: $39 million; 48 FTEsDRAFT


Pending Factors & Outlook

Countywide strategies2011‐12 State BudgetImpact of economy, high unemploymentRetirement costsFederal budget, deficit and debt

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Next Steps

Proposed Budget Submitted to BoardJune 9 2011June 9, 2011

Budget Hearings/AdoptionJune 20 24 2011June 20 – 24, 2011

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Alameda CountyAlameda CountyBudget Information on the Web

www acgov org/budget htmwww.acgov.org/budget.htm

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Alameda CountyAlameda CountyFY 2011-12

B d t U d tBudget Update

B d t W k M tiBudget Workgroup MeetingMay 16, 2011Susan S. Muranishi, County AdministratorKai Mander, Principal Analyst

DRAFT

alameda county budget workgroup may 16, 2011

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